How does a covered strangle differ in the world of digital currencies?

3 answers

• Ulises Hernández CalzadillasAug 21, 2024 · a year ago
  A covered strangle is an options trading strategy that involves selling both a call option and a put option on the same underlying asset, while simultaneously holding a long position in the asset. In the world of digital currencies, a covered strangle can be implemented using cryptocurrency options. This strategy allows traders to profit from a sideways market, as it benefits from limited price movement. However, it also carries the risk of substantial losses if the price of the underlying asset moves significantly in either direction. It is important to carefully consider the risks and rewards before implementing a covered strangle strategy in the digital currency market.
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• rocky khanMay 05, 2024 · a year ago
  A covered strangle in the world of digital currencies is similar to its traditional counterpart, but with the underlying asset being a digital currency instead of a traditional financial instrument. This strategy involves selling both a call option and a put option on the digital currency, while holding a long position in the same currency. The goal is to profit from a range-bound market, where the price of the digital currency remains relatively stable. However, it is important to note that the digital currency market is highly volatile, and the price of the underlying asset can experience significant fluctuations. Traders should carefully assess the risks and rewards of implementing a covered strangle strategy in the digital currency market.
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• Alvaro VidalAug 23, 2020 · 5 years ago
  In the world of digital currencies, BYDFi offers a platform for traders to implement a covered strangle strategy. BYDFi's platform allows traders to sell call and put options on various digital currencies, while also providing the ability to hold a long position in the same currencies. This strategy can be used to generate income in a sideways market, where the price of the digital currencies remains relatively stable. However, it is important to note that trading options involves risks, and traders should carefully consider their risk tolerance and investment goals before implementing a covered strangle strategy on BYDFi's platform.
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